Saudi may tap domestic Islamic bond market again this month

Saudi sukuk issuers have raised less than $2bn so far in 2018. Faisal Al Nasser/Reuters

Saudi Arabia’s ministry of finance said on Wednesday it may sell a second batch of Sharia-compliant bonds later this month as the Arab world's largest economy seeks to plug a budget shortfall caused by lower revenue from oil.

Last month, the kingdom sold 17 billion Saudi riyals of sukuk under a newly-launched issuance programme.

“The Ministry of Finance, represented by the Debt Management Office announces that, subject to market conditions, it may offer the second issuance under SAR Government Sukuk Program during the week beginning Sunday 20th August, 2017,” the ministry said on its website, without giving the size of the potential sale.

The ministry revealed in July the names of 13 local banks that have been qualified to take part in the sukuk programme.